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Port of New Orleans Expands Foreign-Trade Zone

Aerial view of the Port of New Orleans with shipping activities.

News Summary

The U.S. Commerce Department has approved the expansion of the Port of New Orleans’ Foreign-Trade Zone to include St. Tammany Parish. This change will offer local businesses benefits such as duty deferrals, tariff reductions, and streamlined customs procedures. This strategic addition connects more industrial sites around Lake Pontchartrain, enhancing trade opportunities in the region. Public comments on the proposal will be accepted until February 2025, indicating a move towards boosting local economies and adapting to international commerce demands.

New Orleans, Louisiana – The U.S. Commerce Department has officially approved the expansion of the Port of New Orleans’ Foreign-Trade Zone (FTZ) to include St. Tammany Parish. This significant change, subject to existing federal regulations including a standard activation limit of 2,000 acres, is anticipated to offer local businesses access to substantial trade benefits such as duty deferrals, tariff reductions, and streamlined customs procedures.

The FTZ is a secure area designated by the federal government and operates under the oversight of U.S. Customs and Border Protection. Within these zones, companies can import, assemble, and reexport goods with reduced or deferred tariffs, enhancing the advantages for firms involved in global supply chains. The inclusion of St. Tammany Parish will also link more industrial sites around Lake Pontchartrain to the FTZ framework, expanding potential trade opportunities for the region.

The Port of New Orleans currently oversees Foreign Trade Zone 2, which encompasses the New Orleans Customs and Border Protection port of entry. The decision to expand illustrates the port’s ongoing efforts to grow its FTZ footprint in response to industrial demand across southeast Louisiana, which has seen a history of expansions since the FTZ was originally authorized in 1946 at the Napoleon Avenue Wharf.

Subsequent expansions occurred in the mid-1980s, adding various areas including the Almonaster-Michoud Industrial District, Newport Industrial Park, and additional warehouse space near the New Orleans International Airport. Further expansions in 1984, 1986, and 1991 included port and warehouse facilities in both Orleans and Jefferson Parishes, demonstrating a consistent effort to adapt to the needs of local businesses.

In 1997, the Port further extended the FTZ to St. Bernard Parish, which incorporated key terminals and covered over 350 acres. These sites are managed by the St. Bernard Port, Harbor and Terminal District and were developed as part of a state-designated Enterprise Zone. A major reorganization of the FTZ in 2010, under the federal Alternative Site Framework, has provided additional flexibility for designating new sites across Orleans, Jefferson, and St. Bernard parishes.

Recently, the Port has invested significantly, totaling over $300 million in infrastructure improvements including cranes, terminal upgrades, and rail expansions, geared towards boosting container and barge traffic. For instance, the Louisiana International Terminal has seen $1.3 billion in commitments from federal, state, and private sectors, with projections indicating it could create approximately 18,500 jobs and generate about $1 billion in new state tax revenue by 2050.

In the first half of 2025, Port NOLA recorded a 2% increase in container volume, handling 263,961 twenty-foot equivalents (TEUs) compared to 258,758 TEUs during the same period the previous year. This existing growth trend is likely to continue with new opportunities created by the FTZ expansion.

Public comments on the FTZ expansion proposal will be accepted until February 3, 2025, with rebuttal comments allowed until February 18, 2025. The proposed area is strategically located adjacent to the New Orleans Customs and Border Protection Port of Entry, aiming to enhance trade operations and support local economies.

The expansion is expected to significantly impact local businesses and stakeholders in both current and proposed service areas, presenting new possibilities for trade and operations as they adapt to the evolving landscape of international commerce.

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Port of New Orleans Expands Foreign-Trade Zone

STAFF HERE NEWORLEANS WRITER
Author: STAFF HERE NEWORLEANS WRITER

NEW ORLEANS STAFF WRITER The NEW ORLEANS STAFF WRITER represents the experienced team at HERENewOrleans.com, your go-to source for actionable local news and information in New Orleans, Orleans Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as French Quarter Festival, New Orleans Jazz & Heritage Festival, and Essence Music Festival. Our coverage extends to key organizations like the New Orleans Chamber of Commerce and Greater New Orleans, Inc., plus leading businesses in energy, healthcare, and education that power the local economy such as Entergy, Ochsner Health, and Tulane University. As part of the broader HERE network, including HEREShreveport.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.

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